Colorado Car Accidents: Property Damage
Colorado car accident property damage insurance pays for damage to someone else’s property following a car accident. In most cases, this coverage covers the cost to repair a damaged vehicle ...
Keep ReadingAs a resident of Colorado, it is crucial to understand the significance of underinsured and uninsured motorist coverage and how they function in the context of personal injury claims.
Underinsured motorist (UIM) protection refers to the coverage provided by your insurance policy when you are involved in an accident with a driver who has inadequate insurance coverage. If the at-fault driver’s liability coverage is insufficient to cover your damages, UIM coverage steps in to bridge the gap and provide additional compensation.
Uninsured motorist (UM) protection, on the other hand, offers coverage when you are involved in an accident with a driver who doesn’t have any insurance. UM coverage ensures that you are still protected and can receive compensation for your injuries and damages, even if the at-fault driver lacks liability coverage.
When you purchase underinsured motorist coverage, you are also purchasing uninsured motorist coverage. You will oftentimes see this coverage on your Declaration’s page abbreviated “UM/UIM.” The underinsured motorist coverage and uninsured motorist coverage limits will also be in the same amount.
In Colorado, UM/UIM coverage works by providing compensation for medical expenses, lost wages, pain and suffering, and other damages caused by the at-fault driver’s insufficient insurance coverage. UM coverage can be utilized in the event the at-fault driver does not have insurance coverage. UIM coverage can be utilized once you have exhausted the liable driver’s insurance limits.
The cost of UM/UIM coverage in Colorado varies depending on several factors, such as your insurance provider, the limits you choose, your driving record, and the type of vehicle you own. On average, adding UM/UIM coverage to your policy may increase your premium by a reasonable amount, but the additional protection can be well worth the cost and provides crucial protection against uninsured and underinsured drivers.
No. UM/UIM focuses on bodily injury claims rather than property damage. For property damage claims, liability coverage under the at-fault driver’s insurance or collision coverage under your policy usually comes into play.
Filing a UM/UIM claim typically does not lead to a direct increase in your insurance rates in Colorado. These claims are generally considered “not-at-fault” and should not result in a penalty. However, it’s essential to review your specific policy and consult with your insurance provider to understand the potential impact on your rates.
Determining the appropriate amount of underinsured motorist coverage depends on various factors, including your budget and the potential risks you may face. In Colorado, the minimum amount of UM/UIM coverage is $25,000.00 per person, $50,000.00 per incident. It is advisable to consult with a personal injury attorney to evaluate your circumstances, assess the value of your assets, and consider the potential expenses associated with severe injuries, such as medical bills and long-term rehabilitation.
In Colorado, insurance companies are required to offer UM/UIM to their policyholders in the same amount as liability coverage. You can, however, elect, in writing, to carry a lesser amount of UM/UIM coverage – this is often times referred to as a “step-down” in insurance coverage. You also have the option to reject UM/UIM coverage in. Before making a decision to reject UM/UIM coverage or carry a lesser amount, it is crucial to carefully consider the potential risks and benefits.
Underinsured and uninsured motorist coverage in Colorado provides essential protection for individuals involved in accidents with drivers who have inadequate or no insurance coverage. It is crucial to educate yourself about the importance of these coverages.
At Bowman Law firm we’re dedicated to helping injured individuals throughout Colorado recover the compensation they deserve after sustaining damages from an accident caused by someone’s negligence. If you or your loved one were in a car accident and have suffered impacts to your health, livelihood, and financial wellbeing, you deserve to be compensated and have your best interest protected against insurance companies’ tactics to offer less than you deserve. Contact the car crash lawyers at Bowman Law to help you recover the compensation owed to you.
We serve Denver, Boulder, Colorado Springs, and Fort Collins and the surrounding areas.